Serbia's central bank (NBS) sells euros, currency weakens

Serbia's central bank (NBS) sold EUR 50mn on the inter-bank foreign exchange market on Wednesday. Like on previous occasions, the move came "in order to ease excessive daily volatility of the exchange rate", said the cabinet of the NBS governor.

Including the Wednesday intervention, the NBS has sold EUR 2.259bn since the beginning of the year in order to ease excessive daily volatility of the exchange rate and enable uninterrupted functioning of the foreign exchange market.

According to the NBS release, dinar will continue to weaken on Thursday and will drop by 0.04 percent against euro, thus setting the official middle exchange rate at RSD 107.5216, which is a new record low for the domestic currency. 

News source: B92 News link: article

 

Serbian entrepreneurs ask for Euro introduction

The introduction of the Euro as Serbian currency would make business in Serbia much easier and it would improve the standard of citizens, believe Serbian entrepreneurs. On the other hand, economists feel that the introduction of the Euro to Serbia is not realistic because it requires EU approval and the initial cost would be very high.

According to entrepreneurs, constant declines in the value of Serbia’s national currency lead to decreases in the purchasing power of citizens because their salaries are shrinking, and this affects the sale of all products. Furthermore, entrepreneurs want some kind of security at the end of the year since in the last few years they have been losing profit due to fluctuations in the exchange rate and weakening of the Dinar that have been reoccurring at the end of the year.

news source: EMG.rs link: article